VEGOILS-Palm oil set for second weekly loss on poor demand, weak rivals

Credit: REUTERS/HASNOOR HUSSAIN

KUALA LUMPUR, Dec 1 (Reuters) - Malaysian palm oil futures fell on Friday to their lowest since October, on course for a second week of losses as they tracked weaker rivals and faced a lack of fresh orders from importers.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange slid 51 ringgit, or 1.31%, to 3,844 ringgit ($823.13) during early trade, its lowest daily level since Nov. 24.

FUNDAMENTALS

* Exports of Malaysian palm oil products in November were estimated to be up between 2% and 11% from the previous month, data from surveyors Intertek Testing Services and AmSpec Agri Malaysia showed on Thursday.

* Analysts say a lack of fresh buying from key destinations due to higher stocks and weakness in demand is weighing on prices.

* Dalian's most-active soyoil contract DBYcv1 fell 1.51%, while its palm oil contract DCPcv1 was down 1.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.88%, extending a two-day decline.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Oil prices fell in early Asian trade on Friday, extending losses after OPEC+ producers agreed to voluntary oil output cuts for the first quarter next year that fell short of market expectations. O/R

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

* The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.28% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.

* Palm oil may extend its bounce into a range of 3,935-3,953 ringgit per metric ton, driven by a wave c, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian sharemarkets started the last month of the year on a cautious note after recent strong gains, though growing expectations Europe and the U.S. are poised to cut rates should help ease pressure on local currencies and central banks. MKTS/GLOB

DATA/EVENTS

0700 UK Nationwide house price Nov

0850 France S&P Global Mfg PMI Nov

0855 Germany HCOB Mfg PMI Nov

0900 Euro Zone HCOB Mfg Final PMI Nov

0930 UK S&P Global/CIPS Mfg PMI Nov

1445 US S&P Global Mfg PMI Nov

1500 US ISM Mfg PMI Nov

1600 US Federal Reserve Chair Jerome Powell

participates in a fireside chat at

Spelman College

($1 = 4.6700 ringgit)

fcpo https://tmsnrt.rs/46JM1Ud

(Reporting by Danial Azhar; Editing by Sonia Cheema)

((danial.azhar@thomsonreuters.com ; Twitter: https://twitter.com/dan_azh ;;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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